CONDITIONS ON RENEWED FUNDING OF GRANTEES.

SEC. 107. CONDITIONS ON RENEWED FUNDING OF GRANTEES. (a) In General.—Section 641(c) of the Head Start Act (42 U.S.C. 9836(c)) is amended— (1) by redesignating paragraph (1) as subparagraph (A), 104 STAT. 1230 (2) by inserting “(1)” after “(c)”, and (3) by striking paragraph (2) and the matter following such paragraph and inserting the following: “(B) except that, if there is no agency of the type referred to in subparagraph (A) because of any change in the assistance furnished to programs for economically disadvantaged persons, the Secretary shall give priority in the designation of Head Start agencies to any successor agency that is operating a Head Start program in substantially the same manner as the predecessor agency that did receive funds in the fiscal year preceding the fiscal year for which the determination is made. “(2) The Secretary shall conduct a full review of each designated Head Start agency at least once during each 3-year period, and shall determine whether each agency meets program and fiscal requirements established by the Secretary. “(3) In carrying out a review of each Head Start agency under paragraph (2), the Secretary shall— “(A) to the maximum extent practicable, carry out such review by using employees of the Department of Health and Human Services who are knowledgeable about Head Start programs; “(B) ensure that an employee of the Department of Health and Human Services who is knowledgeable about Head Start programs supervises such review at the site of such agency; “(C) measure the compliance of the programs of such agency with the performance standards in effect under section 651(b); and “(D) identify the types and conditions of facilities in which such programs are located. “(4) The results of a review conducted under this subsection shall not be sufficient alone for the purpose of determining whether to continue, or to discontinue, providing funds to a particular Head Start agency.”.